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Breakout of Budget Estimate

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Breakout of $308.0 Million Budget Estimate by Program


Breakout of $308.0 Million Budget Estimate by Program Activity
($ in thousands)
Program Activity Actual On-Board
EOY
9/30/10
FY 2010 FY 2011 FY 2012 FY 2012
Actual FTE Estimated
Actual
FTE Current
Services
FTE Budget
Request
FTE
Market Oversight 143 $35,391 129 $33,814 139 $42,410 139 $77,564 250
Clearing, Swap Dealer & Intermediary Oversight 122 $27,294 99 $30,460 122 $38,013 122 $56,553 182
Chief Economist 18 $3,895 14 $3,243 14 $4,107 14 $5,965 20
Enforcement 170 $42,217 149 $43,726 167 $54,071 167 $75,059 235
Proceedings 11 $3,060 11 $2,372 10 $2,991 10 $2,912 10
General Counsel 52 $11,966 43 $13,663 50 $16,769 50 $22,876 70
International Affairs 9 $2,505 9 $2,268 9 $3,048 9 $4,043 13
Agency Direction 32 $8,070 29 $7,819 31 $9,505 31 $11,819 38
Administrative Management & Support 123 $33,946 122 $31,435 125 $39,152 125 $51,209 165
Total 680 $168,344 605 $168,800 667 $210,066 667 $308,000 983

Breakout of $308.0 Million Budget Request by Program Activity
Program Activity Percentage
Market Oversight 25%
Clearing, Swap Dealer & Intermediary Oversight 18%
Chief Economist 2%
Enforcement 24%
Proceedings 1%
General Counsel 8%
International Affairs 1%
Agency Direction 4%
Administrative Management & Support 17%

Breakout of $308.0 Million Budget Estimate by Object Class


Breakout of $308.0 Million Budget Estimate by Object Class
($ in thousands)
Object Class FY 2010
Actual
FY 2011
Estimated
Actual
FY 2012
Budget
Request
11.1-11.5 Personnel Compensation $82,577 $94,412 $142,697
12.1 Personnel Benefits: Civilian 23,164 26,960 41,703
13.0 Benefits for Former Personnel 4 4 227
21.0 Travel & Transportation of Persons 1,999 1,129 5,129
22.0 Transportation of Things 55 55 245
23.2 Rental Payments to Others 12,632 14,297 20,507
23.3 Communications, Utilities & Miscellaneous 4,156 3,406 5,267
24.0 Printing and Reproduction 664 938 1,325
25.0 Other Services1 30,910 24,520 68,003
26.0 Supplies and Materials 1,051 1,074 1,932
31.0 Equipment 7,422 2,005 14,743
32.0 Building/Fixed Equipment 3,685 0 6,222
42.0 Claims/Indemnities 25 0 0
99.0 Subtotal, Direct Obligations 168,344 168,800 308,000
99.0 Reimbursable 40 175 175
99.0 Total Obligations $168,384 $168,975 $308,175
1 Includes costs for advisory and assistance services for information technology, Enforcement investigations, economic research and analysis, and operations and maintenance of facilities. (back to text)

Breakout of $308.0 Million Budget Request by Object Class
Object Class Percentage
Compensation and Benefits 60%
Travel and Transportation 2%
Space Rental 6%
Communication and Utilities 2%
All Other 22%
Supplies and Printing 1%
Equipment 7%

Effect of Change in FY 2011 Base from President’s Budget of $261 million to Continuing Resolution Level of $168.8 million.

The President requested $261 million for the CFTC for FY 2011 in order for it to meet both pre-Dodd Frank and Dodd Frank mission and obligations. Of the $261 million $216 million was requested to cover pre-Dodd-Frank authorities. However, Congress has currently continued funding the CFTC at its FY 2010 level of $168.8 million through a Continuing Resolution that will expire on March 4, 2011. The Commission continues to support the President’s FY 2011 request for the agency, as it provided an important step towards ensuring that the CFTC had the staff and resources it needs to fully execute its responsibilities.

However, for the purposes of the FY 2012 budget submission, the Office of Management and Budget (OMB) has directed Federal agencies to include the Continuing Resolution funding level as the FY 2011 base for budget formulation given the uncertainty over what Congress will finally provide in appropriations. Consistent with this direction, the CFTC is using the $168.8 million FY 2010 funding level as the base for the FY 2011 budget.

For context on the impact of these numbers on the CFTC’s budget, it is important to recognize that the Commission reached low point in staffing for the CFTC in FY 2007. The agency had shrunk from a staffing level of 567 FTE in 1999 to 437 FTE in FY 2007—a 23 percent decline in staff while during the same period the futures and options markets increased five-fold. With support from the President and Congress beginning in 2008, the agency was able to begin rebuild its staff, reaching an authorized level of 650 FTE in FY 2010. That 650 FTE level gave the agency a staff that was modestly larger than it had in 1992 when it had the agency had a 592 FTE level and a high of 634 on board, and the markets were a fraction of what they are today.

Under the President’s FY 2011 budget request, growth for the agency was projected to continue up to a level of 864 FTE, the Continuing Resolution will leave the agency near the 650 FTE level.

The Commission has realigned it FY 2011 Budget to conform to the limitations of the FY 2011 Continuing Resolution. All hiring has been restricted. The CFTC hired only two employees since the end of FY 2010 and student employees working part-time were terminated at the end of the 1st quarter of FY 2011. All programs are managing their pre-Dodd-Frank and Dodd Frank responsibilities with current staff which is well below what is required to manage even pre-Dodd-Frank activities. The CFTC is of course complying with the government-wide freeze in cost-of-living-adjustment and some employee benefits programs have been substantially reduced or eliminated outright where legally permitted. The same is true for some advisory and assistance services related to human resources, and operations and logistics, and economic analysis and research. Program travel has been reduced approximately 50 percent. Even though technology is critical the CFTC’s efforts to oversee derivative markets, the Office of Information Technology Service’s (IT) budget has been reduced 36 percent in order to preserve existing staffing levels. The capital non-IT equipment budget and fixed equipment/construction budget has been zeroed out.

Crosswalk from FY 2011 to FY 2012


Crosswalk from FY 2011 to FY 2012
($ in thousands)
  FY 2011
Budget
FY 2012
Request
Change
Budget Authority ($000) $168,800 $308,000 $139,200
Full-Time Equivalents (FTE) 667 983 316
Explanation of Change   FTE Dollars
Current Services Increases: (Adjustments to FY 2011 Base)      
To provide for the following changes in personnel compensation:      
– Performance element of merit adjustment (formerly WIG) July 2012     217
– Performance element of merit adjustment (formerly WIG) July 2011 (annualization of)     720
– To provide for increase in incentive awards     188
– To provide for increased costs of personnel benefits     353
– To provide for increased costs of unemployment benefits     109
To provide for the following changes in non-personnel costs:     39,679
– Travel/Transportation ($1,899)      
– Space Rental/Communications/Utilities ($6,902)      
– Supplies/Printing ($396)      
– All Services ($19,786)      
– Equipment ($4,474)      
– Building/Fixed Equipment ($6,222)      
Program Increase: (Adjustments to FY 2012 Current Services)      
– To provide for salaries and for 316 additional FTE   +316 61,664
– To provide for the following changes in non-personnel costs:     36,270
– Travel/Transportation($2,291)      
– Space Lease ($786)      
– Communications and Utilities ($383)      
– Printing ($245)      
– Other Supplies ($23,697)      
– Supplies ($604)      
– Equipment ($8,264)      
Total Increases   +316 $139,200

 

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